## Iraq: First and Second Reviews of the Staff‑Monitored Program and Request for a Three‑year Stand‑By Arrangement — Press Release; Staff Report; and Statement by the Executive Director for Iraq

_IMF Staff Country Reports, July 14, 2016_

## Source details

**Canonical URL:** [Iraq: First and Second Reviews of the Staff‑Monitored Program and Request for a Three‑year Stand‑By Arrangement — Press Release; Staff Report; and Statement by the Executive Director for Iraq](https://www.imf.org/en/publications/cr/issues/2016/12/31/iraq-first-and-second-reviews-of-the-staff-monitored-program-and-request-for-a-three-year-44076)

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## Bibliographic details
- Authors: Arrangement-Press Release
- Published: July 14, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498357654.002

---

### Executive summary
- The paper discusses Iraq’s First and Second Reviews of the Staff‑Monitored Program (SMP) and Request for a Three‑Year Stand‑By Arrangement.
- The oil price decline has resulted in a massive reduction in Iraq’s budget revenue, pushing the fiscal deficit to an unsustainable level.
- Authorities are responding with a mix of necessary fiscal adjustment and financing while maintaining their commitment to the exchange rate peg.
- An SMP was started in November 2015 to establish a track record of policy credibility and pave the way to a possible IMF financing arrangement.
- Performance under the SMP has been broadly satisfactory.

### Key findings and issues
- Fiscal impact:
  - Oil price decline → massive reduction in budget revenue.
  - Fiscal deficit described as unsustainable.
- Policy response:
  - Combination of fiscal adjustment and financing measures.
  - Continued commitment to the exchange rate peg.
- Program implementation:
  - SMP initiated in November 2015.
  - Performance under the SMP: broadly satisfactory.

### Policy recommendations and program intent
- Use SMP track record to pave the way for a possible IMF financing arrangement (request for a Three‑Year Stand‑By Arrangement).
- Blend of fiscal adjustment and financing to address revenue shortfalls while preserving the exchange rate peg.

### Metadata and classification
- Publication date: July 14, 2016
- Pages: 100
- Volume: 2016
- Issue: 225
- Series: Country Report No. 2016/225
- DOI: https://doi.org/10.5089/9781498357654.002
- Stock No: 1IRQEA2016002
- ISBN: 9781498357654
- ISSN: 1934-7685
- Subjects: Economic and financial statistics; Expenditure; Government finance statistics; Oil prices; Oil, gas and mining taxes; Prices; Public debt; Public financial management (PFM)
- Keywords: bringing expenditure; CBI auction; CR; financing; financing of the government; Global; government; Government finance statistics; IMF quota; Iraq; ISCR; ISIS attack; ISIS funding; Oil prices; oil revenue; oil‑price shock; US$

*International Monetary Fund. Middle East and Central Asia Dept. "Iraq: First and Second Reviews of the Staff‑Monitored Program and Request for a Three‑year Stand‑By Arrangement‑Press Release; Staff Report; and Statement by the Executive Director for Iraq", IMF Staff Country Reports 2016, 225 (2016).*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/iraq-first-and-second-reviews-of-the-staff-monitored-program-and-request-for-a-three-year-44076_